This is, probably, the most simple way to use the W.D. GANN principle of PRICE x TIME squared.
I like to call this method the PRICE KARMA POLICE! :D
RECIPE:
1. find an ANGLE in the PAST (from a pivot to another)
2. find the 90 degree opposite of this angle (projecting to the future now
3. WHEN price TOUCH the line, make an analysis and if the CONTEXT is in agreement, it has HUGE chance of this being a REVERSAL point.
In this chart you can see two angles showing this behavior in the past and now, a new one mapping a zone where I should think about trend reversion.
UNTIL THERE, THE TREND IS STILL YOUR FRIEND
:)
some prefer the 2:1 ratio... it is more than valid.
I trade with a trailing stop.
I use the square of 9 to calculate the best level for a trailing stop (until it stop working and the price change direction)
but it depends on the trader taste, habits, humor, etc.
you can also use a classic modern gann tool, the HILO, to use for trailing stop too.
in higher time frames, the simplified Gann Fan with percentages (it is not the classical Gann fan, the 1x1, 2x1, 3x1, etc) is a great tool to measure the moment to get out of the trade.
Simple.
Clean.
Effective.
Vintage Trading is CALM, no stress, but still FUN :)